"uncovering hidden value in a midsize manufacturing company"

Strategic pathway: Establishing the right sequence of strategic priorities. Four stages are sited. First protect your existing business. Then, penetrate further into existing market segments with existing products or upgrades. Next, extend the business by creating new products for existing segments or by entering new segments with existing products. Finally, diversify into new markets with new products. This article was primarily written for midsize company management —specifically the manufacturing sector, but the authors see usefulness for other businesses including service industries.

James E. Ashton served as the chairman or CEO of a number of midsize manufacturing companies. Frank X. Cook, Jr., is a consultant to such companies. Paul Schmitz is the CEO of ThemaSys, a maker of heat-transfer products. Ashton and Cook authored “Time to Reform Job Shop Manufacturing”.

Their theory is that midsize companies can produce growth rates of 15 % to 20% per year, over t...